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Problem 3-8 Whispering Winds Company determined its ending inventory at cost and at lower of cost and net realizable value at December 31, 2018, 2019,
Problem 3-8 Whispering Winds Company determined its ending inventory at cost and at lower of cost and net realizable value at December 31, 2018, 2019, and 2020, as follows: Lower of Cost and Cost Net Realizable Value Dec. 31, 2018 $67,000 367,000 Dec 31, 2019 99.000 30.100 Dec. 31, 2020 78,800 69,000 Prepare the journal entries that are required at December 31, 2019 and 2020, assuming that a periodic Inventory system and the direct method of adjusting to NRV are used. (Credit account titles are automatically Indented when the amount is entered. Do not Indent manually. If evitry requi , select "No Entry for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit Date 12/31/19 (To cose beginning inventory) 12/31/19 (To record ending Inventory) 12/31/19 (Year end Inventory adjustment) 12/31/20 Account Titles and Explanation Debit Date 12/31/19 Credit (To cose beginning inventory) 12/31/19 To record ending inventory) 12/31/19 (Year end Inventory adjustment) 12/31/20 (To close beginning inventory) 12/31/20 (To record ending inventory) 12/31/20 (Year end Inventory adjustment) Prepare the journal entries that are required at December 31, 2019 and 2020, assuming that a periodic Inventory system is used, with inventory recorded at cost and reduced to NRV through the use of an allowance account. (Credit account titles are automatically Indented when the amount is entered. Do not indent manually. If no entry is required select "No Entry for the account titles and enter for the amounts.) Account Tities and Explanation Debit Date 12/31/19 (To close beginning inventory) 12/31/19 (To record ending inventory) 12/31/19 (To write down inventory to net realizable value) 12/31/20 (To cose beginning inventory) 12/31/20 (To record ending inventory) 12/31/20 2/31/20 (To record ending inventory) 12/31/20 (To write down Inventory to net realizable value)
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